The New Corporate Tax Rates FY2020 and onwards
The Finance Act for FY2020 published in Moroccan Official Gazette No. 6838 bis readjusted the progressive scale of corporate income tax (CIT) rates as follows:
- Raising the corporate tax rate from 17.5% to 20% for the intermediate net profit bracket from MAD 300,001 to MAD 1,000,000.
Raising the rate of the scale capped at 20% (instead of 17.50%), applied to the net taxable profit greater than MAD 1,000,000 for the following companies:
-
- Exporting companies (for more details, please refer to our article “New Tax Regime for Exporting Companies“);
- Hotel companies and tourist entertainment establishments ;
- Mining companies;
- Handicraft businesses;
- Private educational or professional training institutions ;
- Sports companies;
- Real estate developers;
- Agricultural companies ;
- Companies carrying out services related to outsourcing/offshoring activities whether located inside or outside dedicated platforms for these activities.
Progressive CIT scale before FY2020:
| Net Taxable Profit (in MAD) | Rates | Amount to be deducted |
| <300.00 | 10% | 0 |
| from 300.001 to 1.000.000 | 17,5% | 22.500 |
| > 1.000.000 | 31% | 157.500 |
New Progressive CIT Scale applicable to fiscal years beginning as from January 2020:
| Net Taxable Profit (in MAD) | Rates | Amount to be deducted |
| <300.00 | 10% | 0 |
| from 300.001 to 1.000.000 | 20% | 30.000 |
| > 1.000.000 | 31% | 140.000 |
Legal references :
Articles 6 (I-B-3°; I-B-5°; I-D-1°; I-D-3° and I-D-4°); Ar 6 (II-B-4°; II-C-1°-b; II-C-1°-c and II-C-2°) and Ar 19-I-A of the Moroccan Tax Code.
Written by Ali SALIM Manager TAX
